The cost of driving a vehicle for business can be figured using actual expenses or an IRS-set mileage rate (there are some restrictions on this choice). The IRS-set mileage rate for 2019 is 58¢ per mile (up from 54.5¢ in 2018). The basis of the vehicle must be reduced by a deemed depreciation rate, which is 26¢ per mile, a penny more than in 2018. Be sure to note your odometer reading for the vehicle at the start of the year to help in substantiating business mileage for 2019.
Barbara Weltman
Big Ideas for Small Business, Inc.
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